PASTY lovers will be hit with a price hike following the Budget earlier this week.
Chancellor George Osborne has hit the pockets of shoppers with a 20 per cent hike on all hot takeaway food on top of the increases in tobacco, fuel and alcohol,
This means that at the Greggs bakery chain – which has five outlets in Hartlepool and various branches across east Durham – 18p will be added to the price of a 90p hot sausage roll and 30p to a £1.49 pasty.
Mr Osborne slapped 20 per cent VAT on all hot takeaway food, not just products sold by fast food chains
The takeaway tax means the price of goods such as hot rotisserie chicken at a supermarket will rise by £1.
The 20 per cent VAT will have to be added to all hot food, including pies, pasties, toasted sandwiches and other products which are “above the ambient air temperature at the time they are provided to the customer”.
Anything that is hotter than the surrounding air temperature when it is handed over at the till will now be subject to VAT.
But a shop can sell cold sausage rolls, pasties or cooked chicken, which are below the surrounding air temperature, without applying the sales tax.
Greggs bosses have vowed to fight the Government over the changes.
A spokesman said: “We do not believe that our freshly-baked savoury products should be subject to VAT and we will be making strong representation to the Government regarding the proposed changes.”